March 23, 2020
Capital Square Realty Advisors, LLC, a leading sponsor of tax-advantaged real estate investments, announced today that CSRA Opportunity Zone Fund I, LLC, a project-specific opportunity zone fund, has been fully subscribed by investors. The private placement offering raised $7 million to help develop Scott’s Collection I, a mixed-use multifamily property in the Scott’s Addition designated opportunity zone in Richmond, Virginia.
“Capital Square is gratified by the strong interest from investors in the Richmond area and nationwide,” said Louis Rogers, founder and chief executive officer of Capital Square. “Scott’s Addition is truly a national story – an industrial area that is being transformed into a highly desirable live, work and play neighborhood.”
Located at 3000 – 3008 West Clay St., Scott’s Collection I is a single-structure, ground-up development that will include a five-story, Class A multifamily community with 80 units, private balconies and a lobby area. Situated on approximately 0.54 acres of land, Scott’s Collection I will feature a 3,700-square-foot, elevated courtyard and 65-70 onsite parking spaces. The corner-lot property has unobstructed views of the Scott’s Addition neighborhood and downtown Richmond.
“This project is well-positioned to deliver attractive risk-adjusted results for our investors during a uniquely challenging period for the American economy,” said Adam Stifel, executive vice president of development. “We are pleased to do our part by providing employment opportunities in our local community when we break ground early this summer.”
Established in 1901, Scott’s Addition is a historic area that is now the City of Richmond’s fastest growing neighborhood and the second-highest performing market with an approximately 98% occupancy, according to Yardi Matrix. Scott’s Addition is a designated opportunity zone. According to Yardi Matrix, Scott’s Addition’s apartment rental rates are projected to increase 3% to 4% per year for five years between 2020 and 2024.
Opportunity zones were created to stimulate long-term private investments in low-income urban and rural communities nationwide, along with certain contiguous areas. Conceived as part of the Tax Cuts and Jobs Act of 2017, opportunity zone funds are intended to help foster economic growth by providing tax benefits to incentivize private investments in designated opportunity zones.
About Capital Square
Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. Capital Square has completed approximately $1.9 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. Its founder, Louis Rogers, has structured hundreds of investment offerings totaling in excess of $5 billion. Capital Square’s related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high net worth investors, private equity firms, family offices and institutional investors. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. In 2017 and 2018, the company was also ranked on Richmond BizSense’s list of fastest growing companies. In 2019, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” and “Fantastic 50” reports. To learn more, visit www.CapitalSquare1031.com.
- On March 23, 2020